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Empire and Sobeys complete going private transaction

HALIFAX, June 15 /CNW/ - Empire Company Limited ("Empire") and Sobeys
Inc. ("Sobeys") announced today that Empire has acquired all of the
outstanding common shares of Sobeys that it did not previously own at a price
of $58.00 per share pursuant to a Court-approved plan of arrangement.
The plan of arrangement was approved by the Sobeys shareholders on
June 9, 2007, and by the Supreme Court of Nova Scotia on June 13, 2007. The
plan of arrangement became effective upon registration of the final Court
order with the Nova Scotia Registry of Joint Stock Companies following the
close of the market today.
The Sobeys common shares will be delisted from the Toronto Stock Exchange
on June 18, 2007. CIBC Mellon Trust Company, the depositary for the
transaction, will distribute a letter of transmittal containing instructions
for the return of share certificates and receipt of payment to shareholders of
record as of the effective time of the plan of arrangement. Shareholders who
hold Sobeys common shares through a broker or other intermediary should
contact their broker or intermediary for details on receipt of payment for
their shares.
The total costs of this transaction to Empire were approximately
$1,062 million. These costs were funded through the application of the net
proceeds of the sale of Empire's portfolio investments totaling approximately
$278 million and the drawdown by Empire of approximately $784 million pursuant
to a newly established $950 million three year revolving term credit facility.
About Empire
Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered
in Stellarton, Nova Scotia. Empire's key businesses include food retailing,
real estate, and corporate investment activities. With approximately
$13.2 billion in annual revenue and $5.1 billion in assets, Empire employs
approximately 37,000 people directly and through its subsidiaries. More
information about Empire Company can be found at www.empireco.ca.
About Sobeys
Sobeys Inc., headquartered in Stellarton, Nova Scotia, is a leading
national grocery retailer and food distributor. Sobeys owns or franchises more
than 1,300 stores in all 10 provinces under retail banners that include
Sobeys, IGA, Foodland, Price Chopper food stores and Lawton's Drug Stores. The
Company is committed to providing the most worthwhile experience for its
customers, employees, franchises, suppliers and shareholders. More information
on Sobeys can be found at www.sobeys.com.
Forward-looking Statements
This news release contains "forward-looking statements" regarding a going
private transaction. Readers are cautioned not to place undue reliance on such
forward-looking statements. Actual results and developments may differ
materially from those contemplated by these statements depending on a number
of risks and uncertainties, including risks related to the operation of the
respective businesses of Empire and Sobeys, as more fully set forth in each
company's public filings available at www.sedar.com.
The forward-looking statements contained in this document are made as of
the date of this document and neither Sobeys nor Empire undertakes any
obligation to update publicly or revise any of the forward-looking statements
contained in this news release, except as required by law.
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